The Request for Arbitration – Institution Rules
• Filed by the Claimant – usually the investor; could be the
State (or in some circumstances, a subdivision or agency of a
State)
• Claimant pays a non-refundable lodging fee of 25,000 USD
– helps prevent frivolous claims
• ICSID reviews the request in light of the Convention and the
instrument of consent
• The request is registered unless it is “manifestly outside the
jurisdiction of the Centre” (Article 36(3) ICSID Convention)

Constitution of the Tribunal - Process
1. Determine the number of arbitrators and the method of their appointment
2. Selection and appointment of Tribunal members
3. Acceptance of appointment and constitution of the Tribunal

Tribunal Selection and Appointment
Parties can select anyone who meets
qualifications in Article 14:
• High moral character
• Recognized competence
• Independent judgment
Nationality:
Art. 39, Rule 1(3)
Majority shall be nationals of States other than
the State party to dispute and the State of
investors’ nationality (unless parties otherwise
agree)

Acceptance of Appointment
& Declaration – Constitution of the Tribunal
ICSID seeks acceptance from appointees (Arbitration Rule5(2))
As soon as he has received the fee for lodging the request, the Secretary-General shall transmit a copy
of the request and of the accompanying documentation to the other party
Declaration of Arbitrator (Arbitration Rule 6):
To keep information confidential
To judge fairly as between the parties
Statement of relationship with parties or other circumstance if needed
Continuing obligation to disclose any such relationship or circumstance that arises
subsequently

Commencement of Arbitration
Once Tribunal is constituted:
ICSID notifies
parties of
arbitrators’
acceptance
Tribunal is
constituted
and
proceeding
begins
First advance payment
First Session held
within 60 days
30-day limit to file
Preliminary Objection
under Rule 41(5)

First Session of the Tribunal – Practical Considerations
To be held within 60 days from Tribunal constitution (unless otherwise agreed)
Date fixed by Tribunal in consultation with the parties and Secretary-General
Held in any venue agreed by parties – (Washington, D.C. as default)
ICSID encourages parties to consider video or teleconference to reduce costs

Non-disputing Party Participation – Arb. Rule 37(2)
Any person or entity that is not a party to the dispute can request to participate and
file an amicus curiae submission
Tribunal discretion to accept the submission based on whether:
The submission will assist in determination of a factual or legal issue by
bringing a different perspective, particular knowledge or insight
The submission addresses a matter within the scope of the dispute
The non-disputing party has a significant interest in the proceeding

Discontinuance of the Proceeding
Arbitration Rule 43
• On settlement or agreement on discontinuance
by the parties
Arbitration Rule 44
• On request of a party if there is no objection
by the other party
Arbitration Rule 45
• For failure of the parties to act
Regulation 14(3)(d) and (e)
• For failure of the parties to pay advances

Special Features of ICSID Convention Awards
• Awards are final and binding
• Annulment – no appeal in local courts
• Member States must recognize monetary awards
without further process
• Monetary award enforceable as a final judgment
in any Contracting State

Annulment Article 52 of the ICSID Convention
When?
• 5 grounds for annulment, Article 52(1)(a) to (e)
Time limits
• 120 days after the award is rendered
• In case of corruption of a Tribunal member, 120 days after discovery and within 3 years of
award
Who decides?
• Ad hoc Committee of 3 members appointed from Panel of Arbitrators
Stay of enforcement
• Stay of enforcement may be granted during proceeding
Decision
• Decision on annulment can annul award in full or in part

Annulment – Grounds
• The Tribunal was not properly constituted
• The Tribunal has manifestly exceeded its powers
• Corruption on the part of a Tribunal member
• A serious departure from a fundamental rule of procedure
• The award fails to state the reasons on which it is based

Annulment is not Appeal
Article 53 of the ICSID Convention
Limited & extraordinary remedy
Maintains integrity of the process
Can annul the original award in its entirety or in part
Either party may resubmit the dispute to a new Tribunal

Compliance with ICSID Awards
• Compliance is important to maintain confidence in the process
• Could be considered by providers of political risk insurance
• Non-compliance is a breach of ICSID Convention and could lead to a Stateto-State dispute for treaty violation before the ICJ